An onchain metric suggests that litecoin (LTC), the 12th largest cryptocurrency by market value, is trading at discounted prices.
Litecoin’s market value to realized value (MVRV) Z-score was negative at press time. A sub-zero score indicates the cryptocurrency is undervalued relative to its fair value, according to analytics firm Glassnode.
The market capitalization is calculated by multiplying the total number of coins in circulation by litecoin’s going market rate. The realized value is a variation of the market cap that adds the market value of coins when they last moved on the blockchain.It excludes all coins lost from circulation (more than 15%) and is said to reflect the real or fair value of the network.
The Z-score shows by how many standard deviations the market value differs from the realized value.
Historically, Z-scores above eight have signified overvaluation and bull market tops, while negative values have indicated undervaluation and market bottoms.
The Z-score continues to be negative in a sign of cryptocurrency trading at cheap prices compared to their historical standard. (Glassnode) (Glassnode)
The chart shows the Z-score has been consistently negative since July last year.
That’s not new. The indicator has consolidated below zero several times in the past, eventually paving the way for meteoric bull runs.
If history is a guide, the path of least resistance appears to be on the higher side. That said, litecoin and the broader crypto market remain vulnerable to adverse macroeconomic developments like liquidity tightening and the state of the global economy.
At press time, LTC changed hands at $92, representing a nearly 31% gain for the year. Prices clocked a one-month high of $95 early this week, per CoinDesk data.
Litecoin is set to undergo its third mining reward halving in early August, following which the per-block reward paid to miners will reduce by 50% to 6.25 coins from 12.5 coins.
news Bitcoin prices briefly slipped below $8,000 each on Thursday for the first time in three months, though the cryptocurrency is still more than double its level at the start of 2019. What do these bold – and volatile – moves mean for the ecosystem? David Nage, principal at the Los Angeles-based money manager Arca…
Nov 25, 2020 at 7:57 p.m. UTCGreat Wall of China(Shutterstock)Blockchain Infrastructure Firm BSN Adds Polkadot, Oasis, Bityuan to NetworkChinese blockchain infrastructure provider Blockchain-Based Service Network (BSN) has integrated cross-chain protocol Polkadot, cloud computing startup Oasis and China-based public chain project Bityuan into its network. The additions are part of BSN’s effort to bring a variety of…
Jul 8, 2020 at 19:30 UTCUpdated Jul 8, 2020 at 19:31 UTCFormer Facebook deputy general counsel Paul Grewal is joining Coinbase as its new chief legal officer. (Coinbase)Coinbase has hired a former U.S. magistrate judge and Facebook legal alum to lead the cryptocurrency exchange giant’s legal team. On Wednesday, the San Francisco crypto company announced…
Crypto firms were amongst the sectors that posed the greatest money laundering risk, according to a U.K. government report.The country has been trying to tackle crypto crime lately, and the police have stationed crypto tactical advisors across the country.Crypto firms, alongside retail banking, wholesale banking and wealth management, posed the greatest risk of being exploited
(Elijah Hiett/Unsplash, modified by CoinDesk)WikiLeaks Shop Now Accepts Bitcoin Lightning PaymentsThe official WikiLeaks Shop, an offshoot of the non-profit infamous for leaking government secrets, now accepts bitcoin Lightning payments. All proceeds from the online store, which sells WikiLeaks T-shirts and other swag, goes to fund WikiLeaks operations. The shop already accepts bitcoin and other popular…
news Ethereum mining pool Sparkpool has located and verified the accidental sender of an unusually high miners’ fee and agreed to split the amount. In a statement provided to CoinDesk, Sparkpool said it received an email from an anonymous user on Feb. 25, claiming that they had made a mistake by attaching the 2,100 ether (ETH)…
news EOS maker Block.One must pay $24 million in penalties for conducting an unregistered securities sale, the U.S. Securities and Exchange Commission (SEC) announced Monday evening. The SEC said in a press release that Block.One “raised the equivalent of several billion dollars” over a one-year period in an unregistered initial coin offering (ICO). (A total…
Dec 30, 2020 at 8:57 p.m. UTCUpdated Dec 30, 2020 at 9:26 p.m. UTCBitGo CEO Mike Belshe (CoinDesk archives)BitGo to Pay $93K to US Treasury to Settle 183 ‘Apparent’ Sanctions ViolationsBitcoin custodian firm BitGo agreed to pay $93,830 in a settlement pact with the U.S. Treasury over 183 “apparent violations” of multiple sanctions programs.Because of…
One of the most exciting use cases for blockchain technology is commonly referred to as Real World Assets, or RWA. Based on a report from Boston Consulting Group, the on-chain RWA market is expected to reach between $4 trillion and $16 trillion by 2030.We spend so much time talking about the value of crypto assets…